One notable advantage of VALIC is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-cheapest quintile of category peers. The firm’s lineup has demonstrated industry-average durability. Its 10-year risk-adjusted success ratio is 58%, meaning that 58% of strategies have both survived and beaten their respective category median on a risk-adjusted basis. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. Despite other redeeming qualities as a firm, VALIC has seen some disruption among its portfolio management ranks in the past five years, denoted by elevated turnover compared to peer asset-management firms. Long-term stability tends to support positive results.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.